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Only 3% of financial services companies are ready to reach the deadline for open banking, according to a new Delphix survey-

We are confident that only 3% of financial services (FS) organizations are preparing for the next major open banking deadline scheduled for September 2021. New research from Delphix, DevOps industry-leading data company.

The study, conducted by Pulse and commissioned by Delphix, targets 100 technical leaders in the financial banking and insurance industry to see if they are ready to meet Open Banking deadlines and prevent them. I understood that. All respondents are EMEA (77%) and APAC (23%) and work for companies with more than 10,000 employees.

Initially scheduled to come into effect in September 2019, the majority of FS organizations are still ready, despite the requirements of the Second Payment Services Directive (PSD2) and Strong Customer Authentication (SCA), two years later. Is not done. In fact, polls show that 9% of respondents admit that they aren’t ready at all.

The survey shows that only 2% have so far met all of the open banking requirements. On the other hand, 69% meet less than half.

“The financial services sector is undergoing major transformation around data, but data privacy and compliance are major obstacles for many banks that rely on legacy systems,” said Delphix CTO. Daniel Graves said. “Open banking application programming interfaces (APIs) have the potential to open a whole new world for FS organizations and use data to drive transformation services and enhance the superior customer experience.”

The main barriers to open banking

Most banks have a long way to go to support open banking and face significant hurdles. Sixty-two percent of respondents cited the protection of sensitive data across multiple systems and APIs as their number one data privacy and compliance challenge. Other companies struggle to effectively protect sensitive information (40%) without restricting timely access to data, and to maintain data quality and ease of use through compliance measures (40%). 39%).

When exposing APIs to third parties to drive innovation, the biggest challenge for 60% of respondents is the time and effort required to maintain and maintain data integrity. Meanwhile, 52% of FS organizations report limited capabilities to accelerate the development of high-quality APIs and API-driven features. Given that 42% relies on synthetic or subsetted data, the subsequent bottleneck is not surprising. Synthetic data generation and subsetting adds process overhead and causes false positives and false positives in the test cycle, slowing down the development team and degrading software quality.

Overcoming these hurdles is difficult, and the majority of respondents (92%) predict that their organization will be disrupted when deploying the Open Banking API.

“Data privacy challenges and legacy technology stacks are hampering the open banking revolution,” Graves added. “FS organizations need to adopt DevOps data technology, which enables rapid delivery of compliant data via APIs, to overcome these challenges.”

Transformation of open banking

Even in the face of widespread lack of preparation, the majority (84%) consider compliance with the Open Banking Directive to be an important priority.

Open banking is widely seen as a way to accelerate the innovation and modernization of traditional banking. Eighty-eight percent of respondents believe that the number of innovative banking services available to their customers will increase over the next three years. In addition, more than half (51%) believe that open banking will significantly or completely change the way traditional financial services are delivered and consumed over the same period.

Only 3% of financial services companies are ready to reach the deadline for open banking, according to a new Delphix survey-

Source link Only 3% of financial services companies are ready to reach the deadline for open banking, according to a new Delphix survey-

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